Disney Beats Q4 Revenue Forecasts as Theme Parks and Streaming Drive Growth

Disney Outperforms Expectations in Q4 2025, Fueled by Parks and Streaming

BURBANK, Calif. – The Walt Disney Company (NYSE:DIS) posted fourth-quarter financial results that exceeded Wall Street's revenue projections, driven by sustained strength in its theme parks and a rebound in its entertainment division. The global entertainment giant reported revenue of $25.98 billion for the quarter, a 5.2% increase compared to the same period last year and slightly above analyst consensus. Non-GAAP earnings came in at $1.63 per share, topping estimates by 3.4%.

The performance underscores Disney's ability to navigate a rapidly shifting media landscape. While the company's linear television networks face secular decline, its strategic pivot toward direct-to-consumer streaming and immersive in-person experiences appears to be gaining traction. The Experiences segment, which includes global theme parks and cruise lines, saw revenue growth of 5.4% over the last two years, continuing its recovery from pandemic-era disruptions.

"This quarter demonstrates the underlying power of Disney's diversified portfolio," said Michael Torres, a media analyst at Crestwood Advisors. "The parks are printing cash, and Disney+ is moving toward profitability. The challenge remains reigniting growth in the core entertainment studio, which has faced recent box office headwinds."

Disney's Entertainment segment, encompassing its film studios and streaming services, grew 4.2% year-over-year on average over the last two years. The Sports segment, led by ESPN, grew more modestly at 1.3%. Looking ahead, sell-side analysts project revenue growth of approximately 7.1% over the next twelve months, a figure that reflects cautious optimism about new content pipelines and international park expansions.

The company's operating margin for the quarter was 17.7%, consistent with the prior-year period, indicating stable cost management despite inflationary pressures. Over the long term, Disney has significantly improved its profitability on a per-share basis, with EPS growing at a compounded annual rate of 48.6% over the past five years—far outpacing its revenue growth.

Market Reaction and Analyst Commentary

Following the earnings release, Disney's stock rose 3.8% in after-hours trading to $117.08. The market's positive response suggests investors were reassured by the top-line beat and stable margins.

Sarah Chen, Portfolio Manager at Horizon Capital: "Disney is executing on its turnaround plan. The free cash flow generation from Experiences is funding the streaming transition. The path to sustainable, double-digit earnings growth is becoming clearer."

David R. Miller, Editor of 'The Contrarian Media Investor' Newsletter: "Beating lowball estimates is not a victory. This is a company with structurally declining cable assets, a streaming service that's yet to prove it can be consistently profitable, and a film slate that's lost its creative magic. The modest revenue 'beat' is a distraction from the weak 9.5% CAGR over five years. I wouldn't touch this stock until leadership proves it can innovate, not just manage decline."

Eleanor Vance, Retail Investor from Orlando, FL: "As an annual passholder and a shareholder, I see the crowds at the parks and the engagement on Disney+. The brand loyalty is immense. This quarter shows they're monetizing that loyalty effectively again. I'm holding and adding on dips."

Founded by Walt and Roy Disney, the company remains one of the world's most iconic entertainment conglomerates. Its ability to leverage its intellectual property across films, streaming, merchandise, and theme parks creates a unique competitive moat, even as it adapts to new consumer behaviors and technological disruption.